ERF Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. As for ERF, the DDM model, as implemented by StockNews, implies a negative return of 41.12% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for ENERPLUS Corp are:

• ERF's annual revenue of 894 million US dollars puts it in the small-sized revenue class; relative to suck stocks, it has a discount rate lower than 96.08% of dividend issuing stocks in its revenue class.
• Beta is a measure of how volatile a stock is relative to the S&P 500; when evaluated against its peers in the small-sized revenue class, ENERPLUS Corp has a beta lower than 3.57% of such peers.
• Based on dividend growth rate, ENERPLUS Corp has been increasing its dividends at a faster rate than merely 1.05% of US-listed dividend-issuing stocks we observed.

ERF Dividends vs. Peers